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Default risk of Chinese real estate firm increased

China's Kaisa fails to get approval from bondholders to extend maturity.

Default risk of Chinese real estate firm increased

China's Kaisa Group Holdings Ltd has increased its default risk by announcing that it has failed to obtain the required minimum 95% approval from offshore bondholders to extend the maturity of the $400 million bond due next week.

The embattled real estate developer announced last week a proposal to replace 6.5% offshore bonds due on December 7 with new bonds with the same interest rate redemption on June 6, 2023, if at least 95% of holders agree.

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